If you have government loans, you can enroll in Income Based Repayment. We have heard from many readers who have had success with this program. You do not need to be disabled or on disability. This is available to all people who are low income.
Where Do I Sign Up?
Start here: sign up for student loans income-based repayment
How Much Will My New Payment Be?
The amount of payment depends on your income. For many of our readers who are low income, the monthly bill is $0.
Will I Be in Default or Hurt My Credit?
No. If your bill is $0 and you pay $0, you are all paid up!
Warning: Tax Problems
If you enroll in income-based repayment, in 20-25 years your debt will be forgiven and go away! Not as great as it sounds!
This can cause tax problems. If you think you will still be alive in 20 years, learn more about how to escape tax problems.
If You Are In Default Now
If your loans are currently in default: It’s still possible to apply for this program, but you may need to consolidate your loans first. Learn more: If your loans are in default.
My loans were in default. I consolidated all the loans, which brought them out of default without having to make any payments. Then I applied for Income Based Repayment. I work part time, but my income is low, so monthly payment has been $0 for the past eight years. I’m no longer considered in default and don’t have any problems with credit! But I have to plan ahead for taxes when they get forgiven. – OP
For information on disability discharges and other options:
Updated April 2020. Please comment below with stories, ideas, questions or suggestions. Please let us know if any links on this page stop working. If you found this page helpful, please share it with others by pressing one of these magic little buttons: